Thread: Billing Methods (maintenance)

I have been researching the archives for some answers to my question, but would like to get some more up to date info.

How do all of you bill for regular maintenance? What are your terms, i.e. net 15, 30, etc.

For the past four years I have billed mowing at the end of the month, invoices out on the first of the next month, due by the 15th. Mowing is also billed per visit. Any extra work (mainly fert.) is added to that months invoice. Larger jobs (mulch, etc.) are billed upon completion.

I've been toying with the idea of a flat rate for mowing, eight equal installments, billed in advance. Any additional work will be added to the next months installment. Maybe send out next months invoices on the 15th due by the 1st of that month. Service discontinued if the balance isn't paid by the 15th and continued once the balance is paid in full.

I'm mainly looking for a way to provide more consistent cash flow and eliminate doing almost two months worth of work before being paid. I had a tendency to be a little too lenient in the past and let people get behind. I'm looking for a more concrete, consistent method that will provide better results then the old per cut billed at the end of the month method.

I realize there will always be late payers, just looking for a method that may work better.

I bill in advance, for my fixed rate clients by the 30th due by the 15th so we have already received 85% of our January money and Dec extras. Always a few stragglers. For my hourly accounts I bill on the 15th due by the 1st. The bills for those just went out and I have a retainer for all my hourly accounts. Even if you don't do advance billing splitting the billing cycle up helps with cash flow. It does take more attention to keep things straight who has and has not paid.

For the past four years I have billed mowing at the end of the month, invoices out on the first of the next month, due by the 15th. Mowing is also billed per visit. Any extra work (mainly fert.) is added to that months invoice. Larger jobs (mulch, etc.) are billed upon completion.